Renewable energy investment study for electric power enterprise based on a time period with expected supply

ABSTRACT

This paper discusses an investment problem by establishing a cost minimization model for an electric power enterprise. Two potentially investable energy sources are suggested: renewable and new conventional energy, and expected supply level in a coming period is assumed. Features of integrated power market are considered: the merit order effect, carbon emissions intensity, intermittency of renewable energy, carbon tax, loan interest and generation and investment costs. The model is transformed to one-dimensional programming, so the Golden Section Algorithm is adopted. Simulation results are demonstrated in two cases with different supply levels, and they confirm the validity of the model.

KEYWORDS:

• Renewable energy investment
• intermittency
• power system
• merit order effect
• carbon emissions

Nomenclature

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Acknowledgments

Thanks to Wei-Bing Zhou in the CNG, Anhui, he arranged us the meeting with employees and gave some valuable feedback.

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Funding

This work is supported by the National Natural Science Foundation of China (72071130).